Manchester is highlighted as a standout performer following two decades of profound economic transformation in the 2026 Oxford Economics Global Cities Index released today.
Anchored by a thriving cultural economy, a massive student population, and rapid expansion in knowledge-based industries, Manchester has recorded some of Europe’s sharpest employment gains.
Driven by strong momentum in professional business services, the city outpaced all other UK cities in GDP and productivity growth.
Bringing together five categories — Economics, Human Capital, Quality of Life, Environment, and Governance — the index features a thorough assessment of each city’s standing in the global landscape.
Mayor of Greater Manchester, Bev Craig, said: “Greater Manchester’s transformation is drawing national and international recognition. It’s fantastic to see us placed among the world’s top Cities to Watch in Oxford Economics’ latest Global Cities Index.
“As the report says, our success has been built on the talent of our people, supported by long-term investment in public transport, our building of new homes, offices and workspaces, as well as our outstanding universities and vibrant culture. We’ve created the right environment for businesses to thrive and create high-quality jobs.
“But it also recognises that growth has come primarily from our city centres, across Manchester and Salford. By investing through our Good Growth Fund and rolling out mayoral development corporations across the city region, we will ensure our future delivers good growth that benefits everyone, improves living standards and creates opportunities in every postcode.”
Cllr Bridges, Leader of Manchester City Council, said: “It’s really positive news that the dynamism and success of our city is being recognised as globally significant.
“This hasn’t happened by accident but is the result of clear long-term strategies, stable leadership and the sense of ambition which characterises Manchester.
“But what’s even more important is that this economic growth and job creation is projected to continue for many years based on the current trajectory. It’s vital to ensure that Manchester people are equipped with the skills and confidence to access these enormous opportunities and that everyone can share the benefits. That’s what we’re focused on.”
Joe Manning, Managing Director at Invest Manchester, said: “Manchester being named one of the top five cities to watch in Europe in this year’s Oxford Economics Global Cities Index, as well as being the only UK city on that list, is yet more fantastic news for Manchester.
“The case they set out is in line with the same evidence we put in front of investors, which includes growth in GDP, productivity that outpaces other UK cities, some of the largest employment gains anywhere in Europe since 2010, and a city centre population that has risen by around a quarter, with most of that increase among younger residents.
“The forward view is what will interest investors most, with Oxford Economics expecting Manchester to add the fifth-largest number of jobs of any European city over the next 25 years, with financial and business services creating more roles here than in much larger centres including Paris and Berlin.
“We continue to look forward to what will come next for the city region, and to making sure the growth Oxford Economics is forecasting reaches people right across it.”
“Manchester is firmly positioning itself as a go-to European hub for talent and investment. It has been unique in a UK context for pairing large productivity gains with major employment expansion, particularly across office-based sectors,” said Liam Sides, Director in Oxford Economics’ Cities and Regions unit and lead author of the index.
Cities in the United Kingdom continue to demonstrate exceptional global competitiveness, driven by high liveability, environmental progress, deep talent pools, and diverse employment opportunities, according to the 2026 Oxford Economics Global Cities Index.
London continues to dominate globally, trailing only New York in the worldwide rankings and reinforcing its standing as Europe’s premier metropolis. The capital’s unmatched performance reflects its immense economic scale, concentration of high-paying jobs, and magnet status for top global talent.
“Given the city’s sheer size, breadth of high-paid employment opportunities, and continued ability to attract the highest-skilled workers, London will continue to dominate the very top reaches of our index,” said Sides.
Addressing emerging macroeconomic trends, Sides noted that disruption from AI adoption is unlikely to dim London’s competitive edge. Instead, the capital is uniquely positioned to harness next-generation technology to accelerate productivity and income growth.
“London is a city of immense talent and research capability, with firms operating at the absolute forefront of their sectors,” he added. “There are few cities in the world better placed to leverage the opportunities AI is unlocking.”
Regional Powerhouses: Manchester, Edinburgh, and Bristol
Beyond the capital, UK regional centres are asserting their weight in the global standings:
Edinburgh and Bristol earned top marks in Quality of Life and Environmental metrics. High liveability, paired with robust wage growth and expanding career opportunities, continues to draw skilled professionals and high-growth enterprises to both cities.
Leeds and Cambridge are also ranked highly forcombining liveability with high-value economic output and innovation.
“Both cities should continue to rise in the rankings in coming years, as government spending, private investment, and strong population growth continue to reshape these cities,” said Mr Sides.
Structural Challenges: Housing Constraints and Political Turbulence
Despite strong economic fundamentals, the index illuminates critical headwinds constraining UK urban performance, the index found.
High housing costs represent one of the primary threats to long-term UK competitiveness, creating drag that extends far beyond individual disposable incomes. High housing costs restrict labour mobility, preventing talent from migrating to job-dense city-regions and blunting corporate investment incentives.
“The government is right to pursue planning system reforms, but far more aggressive action is required to unfreeze the housing market and catalyse long-term transaction volume,” Sides warned.
Governance metrics reflect friction from sustained national political turnover—with the UK navigating seven prime ministers over a ten-year span.
“In the UK’s highly centralized governance system, national volatility directly impacts municipal political economies, dampening business confidence and delaying critical infrastructure decisions,” Sides added.
Long-Term Outlook
Despite these friction points, Oxford Economics’ Global Cities Index projects sustained resilience for UK metros.
“Favourable demographic trends relative to continental peers, a resilient service-led economic architecture, and a world-leading university and research ecosystem will ensure UK cities remain central pillars of the global economy,” Sides concluded.
UK Top 10:
- London (2nd)
- Edinburgh (71st)
- Manchester (90th)
- Cambridge (100th)
- Leeds (103rd)
- Glasgow (108th)
- Bristol (112th)
- Oxford (115th)
- Birmingham (118th)
- Newcastle upon Tyne (150th)
Global Top 10:
- New York
- London
- Paris
- Seattle
- San Francisco
- Dublin
- Boston
- San Jose (US)
- Tokyo
- Zurich
